Citigroup CEO Jane Fraser confirmed the bank is exploring a Citi stablecoin and wants the GENIUS Act signed into law, putting the $2.4 trillion lender on a path to compete with Tether and Circle.
Jane Fraser wants the GENIUS Act signed into law. The Citigroup chair and CEO also confirmed the bank is actively exploring a Citi-branded stablecoin, putting America's third-largest lender on a collision course with Tether and Circle in the $180 billion stablecoin market.
Fraser's comments, delivered during the bank's Q2 2025 earnings discussions, represent one of the clearest endorsements of crypto regulation from a major Wall Street chief executive. She said she and other banking leaders continue pushing for changes to the bill's specifics. The broader message: get something on the books.
A Citi stablecoin would make it one of the first major US banks to enter the market directly. Tether's USDT and Circle's USDC currently dominate, with a combined market share above 80%. The bank's near-term priority appears to be tokenized deposits rather than a standalone stablecoin. Citi began rolling out tokenized deposit capabilities in late 2024. Fraser has framed them as the more practical starting point, since they operate within existing banking regulatory frameworks.
Citi also plans to launch crypto custody services in 2026. Custody is the secure storage and management of digital assets on behalf of clients, the infrastructure institutional investors need before committing serious capital to any asset class.
The GENIUS Act passed the US House of Representatives with a bipartisan vote of 308-122. The bill creates licensing and reserve requirements for stablecoin issuers, giving banks like Citi a clear legal pathway to enter the market. Without such a framework, major financial institutions have largely stayed on the sidelines.
Broader crypto market structure legislation, which would address how digital assets beyond stablecoins are classified and regulated, is expected to remain a topic of active discussion into late 2025 and potentially early 2026. Fraser said Citi is participating in Senate engagements on these topics.
When the CEO of a bank with roughly $2.4 trillion in assets says she wants crypto legislation passed, it sends a signal beyond one institution's strategy. JPMorgan has already been active with its Onyx blockchain platform. Bank of America (Alpha Score 68, Moderate) has made quieter investments in blockchain infrastructure. JPMorgan (Alpha Score 66, Moderate, current price $363.13, -0.56% today) has its own blockchain unit.
Some crypto purists worry that heavy bank involvement could reshape the ecosystem in ways that favor centralized players. A Citi stablecoin would be a fully permissioned, bank-controlled instrument, far from the trustless ideal that animated the space originally.
If the GENIUS Act clears the Senate and reaches the president's desk, a wave of bank-issued stablecoin announcements will likely follow. If it stalls, Citi and its peers will probably continue building on the tokenized deposit side, where they don't need new legislation to operate. Fraser has made one thing plain: Citigroup sees digital assets as a permanent part of the financial landscape, not a phase it can afford to sit out.
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